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An Approach To Estimating Net Earnings Impact of Federally Subsidized Employment and Training Programs

College of William and Mary

This study presents estimates of net earnings impact for adult-oriented CETA programs. The data bases used are the Continuous Longitudinal Manpower Survey and a matched comparison group derived from the Current Population Survey. After linking net impact to the human capital model, we estimate fixed effects regressions for numerous subgroups. The estimated equations were used to decompose earnings differentials to provide net impact estimates and to evaluate the quality of the matching procedure. Results are compared with related studies. We also examine broader issues comparing the potential for quasi-experimental versus experimental design in national evaluations of employment and training programs.

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